OMAHA (DTN) -- The Commodity Futures Trade Commission has
fined an Iowa commodity trader $1.25 million and placed permanent restrictions
on his business practices after he caused customers to lose approximately $10.3
million in unauthorized trades from 2012 to 2014.

Nathan Harris of Akron, Iowa, was a trader for Kooima &
Kaemingk Commodities Inc. until August 2014.

Kooimi & Kaemingk, out of Sioux Center, Iowa, was fined
$1.25 million in September 2018 and ordered to repay customers $12 million
after the CFTC found one of the firm's owners and an employee engaged in unauthorized
trades from "investment accounts" in 2014 and that the firm did not
obtain authorization from customers for certain trades and did not receive
power-of-attorney documents from others.

The trading company changed its name earlier this year to
Kooima Kooima Varilek Trading.

According to the CFTC settlement, Harris began opening
accounts with customers early in 2012 and misrepresented Kooimi &
Kaemingk's trading history and profitability to customers, stating that
investment accounts with the company would be low risk. Harris also omitted
facts about financial losses.

Harris then engaged in unauthorized trades that came to
light in spring 2014 when he caused more than $7 million in losses on two
customer accounts. Harris had been warned that his unauthorized trading was too
aggressive, but he continued making such trades. The CFTC stated, "In
particular, Harris placed unauthorized trade in a number of customer accounts
in June 2014 based on a news story that Harris believed would lead to a sharp
downturn in live cattle futures. Due to the losses incurred as a result of
Harris's trading in June 2014, at least one customer took out a mortgage on his
farm to cover the losses."

At least 12 customers lost a total of approximately $10.3
million.

Along with the $1.25 million civil penalty, Harris is
prohibited from...